Are you better off buying or renting in Sydney?

Many mortgage payments are now falling well below the median asking rent for Sydney apartments, which rose two per cent over the June quarter to $500 a week, according to RP Data’s Quarterly Rental Review.

Figures produced by research group comparator now show that from January to March 2014 the average value of loans originated by mortgage brokers is $355,000*.

Based on Aussie Select’s current rates of 4.84% (comparative rate at 4.85%^) for a 30 year loan, this equates to loan repayments of $431.52 a week. That’s almost $70 a week less than the median rental payment.

Here’s an overview of Sydney’s regions and the average weekly rents and rental growth for houses and apartments.

Source: RP Data Quarterly Rental Review June 2014

If you’re in the rental trap now’s a good time to seriously consider ways of getting into the property market, while rates are so low and rents are largely showing continuing growth. Just be sure to consider other costs of buying property, like insurance, rates and maintenance.

Make sure you’re saving by cutting as many costs as you can. Talking to a mortgage broker or seeking the advice of an accountant will help you to investigate and understand your financial position and whether you’re in a position to get on the property ladder. It could be more within your reach than you realise! It doesn’t always take a 20% deposit to get a home loan either, so don’t count yourself out of the market before investigating your options.

Are you in Sydney and still renting? Have you looked into buying versus renting?

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About Erin Peak

Erin is the social media coordinator at Aussie. Born and raised in Sydney, her heart (and wallet) long to wander abroad with Amsterdam being a favourite destination. She is a cheese enthusiast, mother to a miniature Dachshund named Lionel and eternal optimist. When she's not making people laugh at inappropriate moments she's finding free stuff on the street and selling it on eBay - talk about thrifty!

Andrew

I think you’re forgetting about things like annual council rates, insurances, maintenance, etc. This article gives far from the whole picture.

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